LUCRE

Penn State Honors Paterno Contract

Jim Prisching / AP Photo

Former Penn State football coach Joe Paterno stands on the field before his team's matchup against Northwestern, in Evanston, Ill.on Oct. 22, 2011.

“Contracts are contracts” was all Karen Peetz, chair of Penn State’s board of trustees, could say a day after it was revealed that former head football coach Joe Paterno sought a fat deal for himself amid the growing Jerry Sandusky scandal. Peetz said the university will honor the deal, which now benefits Paterno’s estate. Talks around renewing the Nittany Lions coach’s contract were just beginning in January 2011 as JoePa testified before a grand jury about sex-abuse allegations against his former assistant coach. When settled, Paterno’s package for the year totaled $5.5 million, including bonuses and benefits.